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Importance of a victim-oriented recovery policy after major disasters

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  • Hosoya, Kei

Abstract

This paper employs a growth model with public infrastructure, which is included in both utility and production functions, and investigates the importance of a victim-oriented recovery policy after major natural disasters such as the 2011 Great East Japan Earthquake and Tsunami. More concretely, the role of deep parameters in the recovery process is closely examined. Through the analysis, we find that the magnitude of public concerns about infrastructure and the magnitude of the intertemporal elasticity of substitution substantially affect the progress of recovery. In terms of economic recovery in general, production activities tend to be emphasized, but our results imply that one should not disregard victim-oriented recovery.

Suggested Citation

  • Hosoya, Kei, 2019. "Importance of a victim-oriented recovery policy after major disasters," Economic Modelling, Elsevier, vol. 78(C), pages 1-10.
    • Handle: RePEc:eee:ecmode:v:78:y:2019:i:c:p:1-10
    DOI: 10.1016/j.econmod.2018.09.011
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    5. Barnes, Stephen & Joshi, Swarup & Terrell, Dek, 2023. "Disasters and health insurance: Evidence from Louisiana," Economic Modelling, Elsevier, vol. 128(C).

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    More about this item

    Keywords

    2011 Great East Japan Earthquake and Tsunami; Victim-oriented recovery policy; Speed of convergence; Public infrastructure;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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